UK economic growth likely decelerated in Q1

The UK economic growth has likely decelerated in the first quarter of 2016, based on the partial monthly information available, according to Societe Generale. The first estimate of economic growth is based on services, construction and manufacturing sectors. Industrial production in the UK is expected to have declined around 1% q/q in the first quarter, while construction has likely grown around 0.5%, noted Societe Generale.

In the last quarter of 2015, services output grew quite strongly by 0.8%. But the strong pace is unlikely to be maintained. It is expected to have declined to 0.6%. This is likely to decelerate the total GDP growth to 0.4% q/q from 0.6% in Q1 2016, added Societe Generale.

Meanwhile, UK retail sales had increased sharply in January by 2.1% on month-on-month basis. However, the gains were reversed in the following two months. But, retail sales are expected to have recovered in April, said Societe Generale.